EURCAD has respected the 1.554 level and is showing signs of short term weakness. The pullback after completing leg AB of the potential butterfly pattern has presented an opportunity to sell. Relatively flat 200SMA and 500EMA with price hovering above adds to short term bearish bias. The unhit weekly pivot makes for a good target. SL is placed at structure...
USDJPY has completed a bullish cypher on the 1 hour chart with a PRZ that is confluent with S/R. A missed weekly pivot, EMA200 and SMA200 sit above price to add to bullish bias. Entry is placed at the base of the PRZ with SL at 1.13XA and target at .382CD. Confluence in the PRZ: .786XA (cypher completion) 1.5AB=CD 1.272BC Projection Unhit weekly pivot...
Diageo Plc had a nice gap down 2 January that moved the stock into oversold territory based on Quant based approach that I have used for a very long time. I have traded US stocks under certain criteria with live recommendations since last January 2014 and until late autumn with fantastic results that I will publish here shortly. The approach is simple and based on...
PRA has had a big gap down that opens for a mean reversion towards my standard target for these setups at 5 MA at daily. If you would like a secondary target that normally gets you in security a bit earlier you can scale out with some of your posistion at Connors RSI reading with close above 70 on the daily. Stop and target is dynamic at 5 MA as use of stop...
There was a huge gap down on AHC that triggers an long signal based on my mean reversal strategy. The gap har arrived at a major swing level. It is not a structural demand level, but the swing level combined with the very large gap gives a high statistical edge for an reversion to mean. I recommend getting in at the close of this kind of setups. But it is still...
One of the large gap stocks today on the upside is PBYI. This is a good short setup based on mean reversion, but I would like an even better price to be achived before engaging short in this market 2 targets based on price structure with high R value.
It is time to pick up the leftovers from the large decline in WGO after missing its earnings target. The stock plunges to a daily/weekly demand (support) that has earlier shown good demand. This kind of falls that is piercing the Bollinger bands and the RSI values in such an extension is normally due for a mean reversion setup. Recommend an entry at market after...
Mean Reversion on large Volatility in NFLX. Using the VolArb indicator shows NFLX had a potential of large amount of profit of 5-11% by fading the movement 30 minutes after the gap. Could potential generate more profit by selling the puts naked, or vertical put bull spread.
Entry when volatility is outside of 2 std deviations of 20 min bars, exit when price reaches mid bollinger band, set the stop to be about equal to the number of pips in the lower or upper VolArb indicator .
GBPCAD had a very bearish downmove after Carney's speech on Wed. Price plunged first part of Thursday and is now recovering in NY session. it is likely a price is still some way away from the mean , so this may help propel prices up. for about 60-80 pips
I placed a buy limit this morning after price plunged in the Asian Session. From past experiences, this setups a pre condition to create a hammer for subsequent mean reversion trade. However, this time I am trying to even lower my long entry, complying to the axiom of " Buy Low Sell High" as best as I can. I look for confluences of support, namely d1 line chart...